APPROACHING RETIREMENT OR KNOW SOMEBODY WHO IS? In this article we discuss how it is possible to increase your retirement income for the rest of your life when purchasing an annuity. When someone retires a tax-free lump sum – up to 25% - can be taken from the money accumulated in a pension fund. One of the options at that stage is to buy an annuity, which provides an income for the rest of your life. Significant differences in the income a pension fund can buy exist between various annuity providers so it is always worthwhile ‘shopping around’ to find the best deal. In addition, an enhanced annuity could provide an even h i g h e r income if a person smokes, has an illness or even takes prescription medication! Some companies offer products that will maximise your income from your pension fund, based on health or lifestyle conditions. Our experience shows that people often think they don’t qualify, but the fact is that up to 40% of the population could qualify for an enhanced annuity, on the basis of lifestyle or health. However, of the total funds converted to annuities at retirement less than 4% are on terms that are enhanced for lifestyle or health reasons. That means that up to 36% of retirees are missing out! So it pays to look at alternatives. Once an annuity is selected you cannot later change your mind and move funds elsewhere – so making the right choice is vital. At The Financial Group we provide expert, independent financial advice to help you get the best retirement income. Contact us if you would like further details or a FREE no obligation review to see if you would qualify for an enhanced annuity.

LEGISLATION UPDATE. In our January issue of News & Views we spoke of the Government & the Treasury’s intention to set out options to allow early access to pension funds – in a similar fashion to the USA where early access is allowed. Unfortunately, unlike Uncle Sam, the Treasury has decided that they will not go ahead with early access to pension saving due to a “lack of evidence of the impact it would have on private saving levels.” We think the treasury has missed a trick here!